The National Treasury Employees Union has asked the Internal Revenue Service to make a midyear adjustment to the federal government's mileage reimbursement limit, already at a record high.
The mileage reimbursement rate, currently at 50.5 cents per mile, is used to calculate the deductible costs of operating a personal vehicle for business purposes. The IRS determines, usually annually, the maximum rate allowed as a business deduction. The General Services Administration sets the reimbursement rate for federal employees, which cannot exceed the IRS limit.
In a letter to IRS Commissioner Douglas Shulman, NTEU President Colleen Kelley said current record-high gas prices are "placing an especially heavy burden on those who must travel to perform their work duties." While not requesting a specific reimbursement rate, she asked that a midyear adjustment be made so the rate "accurately reflects the actual cost traveling employees pay."
Kelley noted that legislation (S. 3032) is pending in the Senate that would raise the rate to 70 cents per mile for both private sector and federal employees. The bill was introduced by Sen. Charles Schumer, D-N.Y., in May and awaits consideration by the Senate Finance Committee.
Action by the IRS, however, "would provide much more timely relief than depending on the slow pace of the legislative process," Kelley wrote.
NTEU has called for midyear adjustments of reimbursement rates each of the past three years. While such adjustments are unusual, the IRS did respond to high gas prices by changing the rate in September 2005 from 40.5 cents a mile to 48.5.
A GSA spokeswoman said the agency would likely reevaluate the reimbursement rate for federal employees if the IRS raised the deductible limit. The IRS did not respond to a request for comment.
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